The newly-listed ASX ETFs that have outperformed so far in 2024

The Australian ETF landscape is ever-growing and evolving. It currently stands at $219.55 billion in assets under management across 366 listings. It’s an extraordinary leap from the paltry $55.91 billion five years ago.

Across the year to the end of October, there have been 38 new listings on the ASX across different asset classes – primary global equities. The year isn’t over yet, so there is likely to be more to come. Despite the bulk being equity listings, the top-performing newly listed ETF falls under commodities, and when you see what it is, you probably won’t be surprised.

The newly listed ASX ETFs this year

(Scroll across to see returns so far)

Source: ASX, Market Index as at 23 October 2024.

It is absolutely worth noting that it’s not necessarily a fair comparison. Can you compare the performance of an ETF listed a month ago to one listed at the start of February? Probably not. But that doesn't mean that there are not a few top performers that are clearly shooting the lights out this year.

The top five performing ETFs listed this year

Source: ASX, Market Index as at 23 October 2024.

The top performance of Global X Gold Bullion ETF (ASX: GXLD) should be an obvious one for those who have been watching. Gold prices have soared to record highs this year, with the spot price sitting at $4,118.80/oz as of 23 October 2024. Equally or if not more remarkable, the gold price started the year at $A3,047.01/oz.

Similarly, both Australian and US markets hit record highs across the year – throw in some gearing and you can see why the two Betashares Wealthbuilder Funds hit double digits.

In the same vein, the Fidelity Global Future Leaders Active ETF (ASX: FCAP) has a 58.4% allocation to US equities. The top two sector allocations are to Industrials and Information Technology, both of which have had a strong year. It follows the same strategy as Fidelity’s unlisted managed fund which has been running since September 2020.

Infrastructure might be an unexpected addition to the top five, but it’s worth understanding that the Global X US Infrastructure Development ETF (ASX: PAVE) invests in companies that benefit from an increase in infrastructure activity, such as the production of raw materials or construction. US infrastructure is outdated and in need of fairly urgent maintenance – the collapse of the Francis Scott Key Bridge in Baltimore this year was a reminder of the urgency. The Bipartisan Infrastructure Law was passed a few years ago offering a significant injection of infrastructure funding. Reflecting this environment, the underlying index – the INDXX U.S. Infrastructure Development Index – has had a strong performance.

A note on short-term performance

While it’s always promising to start off with strong performance, it’s worth bearing in mind you should look at performance over the long term so you can see how an investment performs in different market cycles.

The ETFs listed this year are a mix of passive and active options so there can be a range of reasons for low performance numbers – it could be as simple as a tough cycle.

For those ETFs that are based on unlisted managed funds, you may want to check out the performance of the unlisted managed fund over the long term for an indication of how it will perform in different cycles.

Have you invested in any of the newly listed ETFs this year? Let us know in the comments.